Tuesday, April 30, 2019

Business Laws : Forming an LLC



Forming an LLC, or limited liability company requires contacting the Small Business Administration to find out what type of licenses and registrations are needed to be filed.

Sunday, April 28, 2019

Legal Separation Vs Divorce - Understanding How to Choose


Happily ever after is not always the case when it comes to being married. Often times married couples have a hard time and need to have a break from each other for one reason or the other. It is amazing how many marriages actually end in divorce. However, before you make the decision to get a divorce it is important to know all the facts and options before making a choice. You need to look at legal separation vs divorce when choosing the right one to fit your needs. First, let us look at and distinguish the differences.

Legal separation is similar to a legal divorce however there are notable differences that need to be taken into account. A legal separation does not permanently dissolve a marriage, it is something that can be temporary if so desired. There are some couples that just need time apart from one another and living separately is the answer.

A legal separation occurs when the two parties are living separately and it has been filed through the court system. Do not mistake a legal separation for a separation. A separation is not filed with the courts and does not carry the same provisions as a legal separation. Much like a divorce, a couples assets, property and child custody are addressed via a legal separation agreement which is filed with the courts. A separation does not provide provisions and is based solely on verbal agreements. Living separately is mainly used to determine if separating is really what a couple wants to do. There is no paperwork or filing with the courts in the case of a separation.

A legal separation is mainly different from a divorce in the fact that the couple is still legally married. There are benefits to living separately instead of immediately filing for a divorce. A divorce terminates the marriage and any and all joint interest the couple may share. A living separately does not terminate the interest however it does divide the interest. Another benefit of living separately is the couple can still take advantage of the tax advantages of being married, they can also continue with joint insurance coverage.

Once legally separated can be canceled at any time and the marriage returned to its original status. If a couple automatically proceeds with a divorce when there is a chance for reconciliation, the couple would have to get re-married. If there is any possibility of a reconciliation a legal separation is the way to go. It gives you the time to decide if being separated permanently is what you really want.

The statistics show that 50% of first time marriages end in divorce, especially for individuals under the age of 40. This may not be surprising to many of you because it is a sad but true fact. It seems to be a quick fix for many troubled marriages. Maybe if more people know there were other alternatives to divorce, no so many divorces would be happening. There are times when all a troubled marriage needs is a little time and reflection for both parties to see that they truly were meant to be together.

Whether you choose to have a divorce or get legally separated, it is highly recommended that you obtain legal counsel. Both a legal separation and divorce require filings to be made in the courts. A divorce also requires a reason for the divorce whereas a legal separation does not require any reasoning. Do not take for granted the different options afforded to you, sometimes making decisions quickly and while in an irritated or frustrated state is rash. Divorce and separation are not games, they are serious matters and need to be viewed as such.

Divorce is not something anyone wants to experience but there are times when the only alternative to a bad marriage is divorce. Whether you decide to have a full-blown divorce or give a legal separation a try, it is important to find out all the details and facts before making a decision. Each state and country have different rules and prerequisites that apply for both legal separations and divorce. This is one of the most important decisions you will make; therefore, make it wisely.

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Saturday, April 27, 2019

Advance Medical Directive: The Basics


Advance medical directives are legal documents designed to outline a person's wishes and preferences in regard to medical treatments, interventions and other health care related issues. Policies may vary from state to state, but regardless of location, advance directives should always be included with each individual's personal medical records.

Advanced directives typically fall into three categories:

  • Do Not Resuscitate Order: This legal document, also known as DNR, is extremely valuable for determining end-of-life issues. A DNR order, however, is not legal until signed by the patient, a witness and a physician. It should also be dated correctly and clearly state whether the patient wants to be resuscitated or not if their heart stops beating.

  • Living Will: This written document stipulates what kinds of medical treatment the patient recommends should they become incapacitated. It can be either general or very specific depending on the person and how adamant they are about their end-of-life care issues. The usual items outlined in a living will include: whether they wish to be on life support, receive tube feedings, length of time (if any) that they will stay on breathing machines, the individual that will make decisions on their behalf, etc.

  • Durable Power of Attorney: This type of advance directive allows an individual the opportunity to designate someone, or a number of individuals, to act on their behalf for specific affairs. A durable power of attorney, or DPOA, has the ability to make bank transactions, sign social security checks, apply for disability, or even write checks to pay utility bills while an individual is medically incapacitated. Once the document is signed, the DPOA has legal priority even over next of kin.

When Should a Directive be Created?

You will see an advanced medical directive used for several different situations-such as when someone is having a major surgery, diagnosed with a life-threatening illness or is even becoming a single parent. Advance medical directives are extremely beneficial if an individual is unable to make his or her own medical decisions. Whatever the reason, all advance medical directives should be signed by an attorney and be notarized.

How to Obtain an Advance Medical Directive

Luckily, there are many ways that someone can obtain an advance medical directive. Many companies have booklets available, social workers and nurses usually have them on hand, and hospitals and attorneys also have copies of directives. It is worth the effort to ask for an advance medical directive as it will be invaluable during a medical dilemma.

By having previously documented personal wishes and preferences, the burden of making tough decisions for family's and physicians' is lessened. Not to mention, the patient's autonomy and dignity will more likely be preserved by following their own choices regardless of mental or physical capacity.


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Friday, April 26, 2019

Living Trust Definition - What is a Living Trust?


The best living trust definition is a written legal document which substitutes for a will as your primary estate planning vehicle. When you have a trust you transfer your assets such as your home, financial accounts and personal property to the trust. In addition, you change the beneficiary or contingent beneficiary of retirement accounts and life insurance to the trust. These assets are then administered for your benefit during your lifetime, and either continue to be held or transferred to your beneficiaries when you die.

The creator, also called the grantor, of the trust, usually names him or herself as the initial trustee in charge of managing the assets. This allows the grantor to remain in control of the assets during his or her lifetime. For all practical purposes under this living trust definition, nothing changes in the way the grantor manages or controls the assets after they are put in trust. The only difference is the named owner.

A successor trustee is named in the document, usually a family member or friend but sometimes an institution such as a bank or trust company. This successor trustee then will manage the trust assets for benefit of the grantor if the grantor becomes disabled and for the contingent beneficiaries after the grantor dies.

This living trust definition is for the revocable living trust. It is also sometimes referred to as a revocable inter vivos or a grantor trust. It may be revoked or amended at any time by the grantors as long as they are still competent.

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Wednesday, April 24, 2019

Estate and Retirement Planning - How Can My Estate Avoid Probate?


If you are a retiree, you likely have heard many claims made about probate problems. The word itself may even fill you with dread. If you are planning your estate, there are some things you should consider concerning probate. In this, as in all things, it is important to take a balanced approach. Let's review some of the issues pertaining to probate. Then you can decide if you need to approach your estate planning differently.

What is the purpose of probate?

You have heard this word many times, but may never have considered what it means. In legal terms, probate is the period of time during which a will is proven authentic or valid. The purpose of probate is to distribute an estate according to the decedent's wishes described in his or her will. Typically, the first step of probate is to use the person's probate assets and property to pay all debts. After that, any remaining assets and property are distributed to persons named in the will. There may be costs associated with the probate process.

Probate ensures that your wishes for the distribution of your estate are carried out upon your death. Probate is a public process. If your estate is of any size, your heirs could suddenly have new friends trying to advise them on how to manage their newly inherited assets.
People often assume all assets are subject to probate, which raises the following question.

Are all assets subject to probate?

No. Some assets are excluded from probate. An example would be assets that are held in joint ownership with rights of survivorship, such as your personal home. Other assets not subject to probate are those governed by a beneficiary designation. This would include assets such as your 401(k), IRAs, life insurance policies, and annuities. Additionally, assets held in a trust are not subject to probate. If the majority of your estate assets are held in accounts of this type, you may not have that much to be concerned about.

What about my brokerage and bank accounts?

These types of accounts can be set up to transfer on death (TOD) to a beneficiary. This designation allows you to pass securities and banking accounts directly to another person (your TOD beneficiary) upon your death without having to go through probate. By setting your accounts up this way, the executor or administrator of your estate will not have to take any action to ensure that your accounts transfer to the person you have designated. The TOD beneficiaries will have to take steps to retitle the accounts in their name, but this is not a very cumbersome process.

As you can see, probate may not be as bad as you have heard. There are many things to consider during the estate planning process.  

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Tuesday, April 23, 2019

Features of a Revocable Living Trust


Financial advisor Ric Edelman discusses why a revocable living trust is a key part in the estate planning process.

Monday, April 22, 2019

Three Lessons on Durable Powers of Attorney


Durable Powers of attorney are an essential ingredient in a complete estate plan, which allows for continued financial management in the event of incapacity. Under a durable power of attorney, an attorney in fact makes financial decisions on behalf of the principal. The attorney in fact can be given broad and sweeping powers. Conversely, powers granted by a durable power of attorney can be limited to particular assets or powers. Accordingly, the level of control given to the attorney in fact should reflect the particular requirements of the estate as well as the principal's comfort with a broad grant of authority. In this article, the author teaches three lessons on effective execution and implementation of durable powers of attorney.

First Lesson: Why would I Need One Now?

The legality of durable powers of attorney stems from the law of agency. Under agency law principals, an individual with capacity may give an agent powers-to contract, to represent the principal or to revoke or amend a trust, for instance. In the case of a non-durable power, the agency terminates upon the principal's incapacity. Durable powers survive incapacity, but the principal must have capacity at the time of execution in order to effect a valid power. Accordingly, executing a durable power of attorney for financial management should be done prior to incapacity.

Waiting until one becomes unable to coherently express one's wishes with regards to financial management decisions is too late, and a court-appointed conservatorship may become necessary. What about the successor trustee designated in my trust, or the executor of my will? Would they be able to step in? Since the principal does not die at incapacity, only an attorney in fact designated under a properly executed power of attorney may step in to make financial management decisions. A last-minute durable power of attorney executed during incapacity would not survive a court challenge, however expensive or damaging the result.

Second Lesson: Consider making the Power Immediately Effective

Often, unwary estate planners will execute "springing durable powers of attorney," which only become effective upon the incapacity of the principal. Incapacity is determined according to a test set out in the power, such as a determination made by a medical doctor or a court rendered decision. But who wants to go through the expense, difficulty, and uncertainty of initiating a legal procedure to determine incapacity? Isn't one of the goals of estate planning to prevent unnecessary expense and delay? Moreover, doctors frequently hesitate to make determinations of incapacity because of liability they may face.

In most cases, a better strategy would be to execute an immediately effective durable power of attorney, which gives an attorney in fact the power to make decisions on behalf of the principal without any finding of incapacity. Many are fearful of an immediately effective power of attorney, reasoning that no one should be given such power over their financial affairs unless they are totally incompetent. If they have such a lack of trust for the attorney in fact, why are they executing a power of attorney in the first place? One would think that even more trust would be required when the principal is incompetent and has little influence over the attorney in fact. Finally, simple measures can be taken to avoid disasters before incapacity. Consider sealing a copy of the durable power of attorney in an envelope labeled "do not open until my incapacity." In addition to oral instructions, this can help to avoid the scenario of a run-away attorney in fact who uses the power of attorney to access financial accounts before incapacity.

Third Lesson: What powers should the Attorney-in-Fact be given?

The powers given to an attorney in fact depend upon the principal's desires and the particular concerns that stem from the types of assets held. The durable power of attorney should be coordinated with the will, trust and advance health care directive to ensure that they do not contradict each other. Namely, should the attorney in fact have the power to create trusts? To rescind or amend existing trusts? Should the attorney in fact have a power to make gifts to himself or to others? These powers can help ensure that preparation for long term care (medical) or tax planning can take place even after incapacity. Before executing a power of attorney, individuals should be fully informed of the powers that they are granting, and the possible consequences of such sweeping grants of power. In all cases, it's best to consult with an attorney who can advise on specific risks.

Conclusion

Durable Powers of Attorney are one of the five essential documents in estate planning discussed in this article series. Unlike a will or trust, which mostly deals with decisions that are made upon one's death, the durable power of attorney deals with life-time financial management and estate planning questions. Individuals should be aware of the risk in waiting to execute the power of attorney; the hazards of "springing" powers; the range of powers that can be given to the attorney in fact; and the risks associated with a sweeping grant of authority to the attorney in fact. --

This article is intended to provide general information about estate planning strategies and should not be relied upon as a substitute for legal advice from a qualified attorney. Treasury regulations require a disclaimer that to the extent this article concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law.

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Sunday, April 21, 2019

The Advantages of an Uncontested Divorce


Many states these days give couples the ability to go through a simple uncontested divorce. In fact, this is the way most couples do divorce. It's relatively simple and inexpensive, and it preserves both parties' dignity and privacy.

Divorce is expensive no matter how you slice it, but if you do need to get a divorce, an uncontested divorce will let you save yourself time and money, and as much heartache as possible. This situation is difficult enough, and you don't have to make it more difficult to make the divorce itself contentious unless it's absolutely necessary to do so.

If there are particularly contentious issues in your marriage still to be resolved (such as child custody), then an uncontested divorce may not be the way to go, since of course you'll need to make sure your rights and those of your children are taken care of. In fact, in some states, if there are children involved, an uncontested divorce may not even be an option for you.

However, if you and your soon-to-be ex-spouse are on relatively good terms and simply need not to be married anymore, and if issues such as child custody are already worked out between you, then an uncontested divorce is going to be easier for everyone. Yes, the process of getting divorced is still painful, but an uncontested divorce makes it as simple a process as possible, too.

Privacy is also an issue with divorce. The disclosures you make to each other don't have to be a matter of public record unless you each want them to be if the divorce is uncontested. The agreement you make will have to be a matter of public record, but only that. By contrast, contested divorce is likely to have every single little nuance of the divorce a matter of public record simply because spouses in a major battle with each other make such things a matter of public record. So if you want to protect your privacy, work out the details of the divorce between you and simply make the final agreements a matter of public record, not every little discussion you to have had as well. This is easier on your children, too.

If you think you can't negotiate an uncontested divorce with your spouse, that's fine. Perhaps you can't. However, make sure that your spouse and you are both aware of the problems an uncontested divorce can help you avoid. It may very well be that simply faced with the differences in navigating through a contested divorce versus an uncontested one will convince the spouse who doesn't want the uncontested divorce to go through with it.

Now, it should be noted that you don't have to agree as to why the divorce is happening to make it uncontested. You only have to agree on the terms of the divorce to make an uncontested divorce possible. Therefore, at first blush, it may certainly be true that you think you cannot manage an uncontested divorce. However, after a bit of time has gone by and tempers have cooled, you may think that having an uncontested divorce is best for you after all. Think about it, think about the cost both financially and to your children, and then decide whether or not an uncontested divorce is your best bet.


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Saturday, April 20, 2019

Is Probate Necessary?


Whether probate is necessary depends on what property the decedent owned, how it was held, and on the law of the state in which the decedent died and the laws of any states where the decedent held property.

Friday, April 19, 2019

Estate Planning : The Probate Process Explained



The probate process can be a headache when estates are not planned well. Uncover the probate process with an estate planning and probate lawyer in this free video on estate law.

Thursday, April 18, 2019

Adult Guardianship



Many families struggle with how to manage the finances, health care and other personal matters of adults who are unable to care for themselves. You may decide to pursue an adult guardianship if an adult is mentally or physically unable to make his or her own decisions and does not have a living will and power of attorney that provide a competent person to make those judgments.

Tuesday, April 16, 2019

How Much Does Probate Cost and How Long Does It Take?


The answer depends on the complexity of the estate and the required probate procedures in your state.

Monday, April 15, 2019

Easily Misused Estate Planning Terms


Wills and Living Wills

Wills and Living Wills are key parts of any good estate plan. However, though the two sound similar they serve very different purposes. A Living Will states your choices for the kind of medical care you want to receive if you become sick or injured and are unable to talk. A Last Will and Testament, often referred to as just a Will, deals with your property and how you want it distributed if you should die. Therefore, a will is only effective after you die and a living will is only effective before you die and when you incapacitated.

Advance Directive vs Advanced Directive

A Living Will is a type of advance directive. All advance directives are documents a person creates that state what his or her choices are in the event he or she becomes incapacitated or otherwise unable to communicate with other people. Advance directives, such as Living Wills or health care powers of attorney, typically address financial or medical situations and can state specific choices as well as nominate someone else to make decisions on the incapacitated person's behalf.

These documents are referred to as "advance" directives because you make them in advance or in preparation for the possibility that you become incapacitated. Some people mistakenly use the term "advanced" directive, implying that the documents are somehow more complicated or important than others. This is not true, and anyone can make advance directives fairly easily as long as they ensure the documents comply with state law.

Probate Estate vs Trust Estate vs Taxable Estate

An estate is a general term used to describe an area or amount of property. It is sometimes used when referring to assets that are part of the probate estate at someone's death, or assets that are not payable to another person at the owner's death or not part of a trust estate. If an asset is part of a trust estate, then generally the asset will not be part of the probate estate. Further, when considering the taxable estate of an individual for estate tax purposes the IRS will consider the gross estate of the decedent to include the value at the time of his death of all property, real or personal, tangible or intangible, wherever situated. If the property is part of a trust estate, it may or may not be part of the gross estate for federal estate tax purposes depending on certain facts about the trust.

Medicare vs Medicaid

Medicare is a federal program attached to Social Security. It is available to all U.S. citizens 65 years of age or older and it also covers people with certain disabilities. It is available regardless of income.
Medicaid is a joint federal and state program that helps low-income individuals and families pay for the costs associated with medical and long-term custodial care. Unlike Medicare, Medicaid has strict eligibility requirements.

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Sunday, April 14, 2019

Uncontested Divorce - Do You Know How It Works?


An uncontested divorce is a divorce in which both parties can agree to the terms of the divorce. With an uncontested divorce, both parties negotiate the terms of the divorce without court proceedings. One lawyer represents one of the parties and prepares the divorce documents. Generally speaking, the lawyer will meet with the party they are representing and start the divorce proceedings. The parties negotiate the terms until both parties are satisfied. There are advantages and disadvantages to an uncontested divorce.

An uncontested divorce is considerably cheaper than going to court. If you can negotiate the terms of the divorce agreement before contacting a lawyer to begin the divorce proceedings, the cost is minimal. It saves time for everyone involved. When facing a divorce, saving money is a huge benefit. This is money that can be used for making necessary changes and for living expenses.

An uncontested divorce can also help maintain a level of civility between the parties. If the parties to the divorce have an amiable relationship, it is best to try to protect that mutual respect, especially if there are children involved. Another advantage is the privacy that an uncontested divorce offers in contrast to court proceedings. The divorce will be a matter of public record, but the visibility of the negotiations and the actions taken is potentially private and limited by what the parties disclose in the documents.

Just because the parties do not immediately agree to terms of the divorce doesn't mean that they should put the decisions in the hands of a judge. It may just mean that more negotiations are needed. However, there are times when an uncontested divorce is not necessarily the best route. There are some disadvantages to uncontested divorces.

If one party is exerting power and control over the negotiations or if there is a history of domestic violence, then an uncontested divorce is usually a bad idea. The victimized party is not in a position to look out for their own best interest. An uncontested divorce does not ensure that the agreement will be fair and just. Therefore, if one party is unable to do this for themselves, an uncontested divorce is not for them.

An uncontested divorce will not work if the parties cannot tolerate each other enough to negotiate the terms of the divorce. If they can't have reasonably civil discussions and come to an agreement, then attempting an uncontested divorce is a waste of time. Sometimes, this hostility will lessen with time and an uncontested divorce will become a viable option.


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Friday, April 12, 2019

Power of Attorney - What Are the Options?


Business or personal matters often require giving power of attorney (abbreviated as POA) privileges to chosen individuals. POA authorizes the chosen individual to decide matters relating to finance or healthcare for another person who is not capable of deciding anything on his/her own.

Before giving such privileges to any person, you need to know how it works, as well as the rights given to that person. The person nominated for the purpose must be competent in making decisions, some of which may go against the wishes of other members of the family.

Law makes it obligatory to give POA only to persons who are at least eighteen years old. It is extremely important to select a person capable of taking difficult decisions relating to finance and health.

People can choose between different kinds of rights and responsibilities that they can transfer through a Power of Attorney form, depending on their needs. Every POA involves two persons, the 'Principal' and the 'Attorney-in-Fact.' The former is the individual who defines the contract, and the latter is an individual who executes the duties specified therein.

The most usual kind of contract is the Durable Power of Attorney. It's a legal document, authorizing the attorney-in-fact to take decisions concerning the finances and health, as stipulated by the Principal. This kind of POA remains in force until the Principal dies or revokes this act.

The other frequently made document is called the Non-Durable Power of Attorney. The attorney-in-fact is authorized to make decisions for certain transactions, which are specified in the act. This kind of POA is usually made when the Principal needs to undergo surgery or another medical treatment that could make them unable to make decisions. This POA is valid for a particular transaction and automatically expires after the operation took place.

A Healthcare Power of Attorney is required while authorizing an individual for taking medical decisions for the Principal. It essentially involves discussing the types of treatments to which the principal may be subjected to.

The Limited Power of Attorney is generally given to another person for selling or transferring some Real Estate or property in the possession of the Principal. The privilege expires after the completion of the transaction.

Most do not feel comfortable discussing such topics. However, the kind of treatment to be followed should be discussed in advance, in case anything unexpected happens. For instance, if someone doesn't want to be kept on a life support system when the brain is declared dead, he/she should specifically mention it in his/her healthcare POA. Else, the medical personnel is obliged to obey the state laws and continue with regular medical treatment.


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Thursday, April 11, 2019

Over 100 Legal Document Services at By the People



Rene of By the People in Fairfield CA gives a short overview of their services and the number of legal documents they can help with. For questions, call Rene or Tammy at 707-428-9871 and you can visit their website at http://www.bythepeopleca.com

Tuesday, April 9, 2019

Considerations in Filing for an LLC


Setting up an LLC and other states has become a popular option for many small business owners because of the many benefits it offers. A limited liability company puts together the advantages of a sole proprietorship, a partnership, and a corporation all in one business entity. This means compete control, tax benefits, and limited liability. The interest in LLCs continues to grow as more and more business owners are able to realize its advantages over other business types.

Before starting an LLC, there are some considerations that should be kept in mind. Taking note of these considerations will ensure that the processing of its registration with the appropriate government agencies will go faster and smoother. When the paperwork is completed properly, there will be no questions as to the LLC's legality.

First, the members filing for LLC should decide on the name of the business. This should meet the standards in LLC names set by the state government. To know the availability and aptness of the name, the business name database can be utilized for verification. Also, the name for an LLC can be reserved for four months by filing an application as well.

The next step is submitting the LLC's Articles of Organization. These articles should include all the necessary information about the LLC such as the name and address of LLC, its registered agent, and its duration. Also, how the LLC will be managed and who will manage the LLC should be stated in the Articles of Organization. Under the law, these are all filed with the office of the Secretary of State through mail.

The Operating Agreement should be processed after the filing of the Articles of Organization. Though this is not required by the state's government, it is still highly advisable. This is essential to define each member's responsibilities and liabilities. With Operating Agreement, the members can be protected from being personally liable if ever the business becomes bankrupt. Aside from the statement of responsibilities and liabilities, other information can be included as well. This includes the business nature, concept, and mission statement.

Lastly, business permits and licenses should be acquired. These vary depending on state laws. The business licenses that need to be obtained depend on the nature of the business and its location. Aside from that, the LLC businesses are all required to submit annual reports. This is also submitted to the Secretary of State on the designated date and can be done through mail or online filing. Knowing about all these requirements will help business owners keep track of their filing schedules to ensure that they are always compliant with all the government's documentation and reportorial requirements.


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Monday, April 8, 2019

7 Important Reasons to Form a Corporation or LLC for Your Business



Are you operating your business as a real business or as a hobby? It's time to make your business OFFICIAL before the summer push for business!

Let me ask you two important questions:
  1. Are you operating your business under your own name, a DBA or fictitious firm name, basically as a sole proprietorship or maybe as a general partnership? AND/OR
  2. Are you or your family at risk because of business or personal assets that are unprotected from unexpected losses or legal issues?
If you answered YES to either question please read on for important news about why NOW is the time to form a corporation or LLC for your business.
  1. Make it Official. Operating as a sole proprietorship or general partnership sends a message that you are still "testing" your business, or that you're not sure you'll really make it. Perhaps your accountant told you that incorporating is an unnecessary expense or that it won't help you save on taxes due to an expectation of low profits. This is the WORST marketing message you can send when you want to attract new clients and partners to your business, who want assurance that you're about your business and here to stay.

  2. The Law of Attraction. You get what you focus on. Testing, hoping and "seeing if things work out or not" BEFORE you decide to step up and make your business official by incorporating broadcasts a clear message to the universe that you're not really serious about your business or committed to a positive outcome. The Law of Attraction states that the universe returns not what you wish for, but what you program into your deepest belief system through your dominant thoughts, actions, and feelings. Making your business official and really stepping up says, "I am ready to receive!".

  3. Limited Personal Liability. You may be thinking "I already lost everything in the market collapse from 2008" and still recovering. If you're one of the few that managed to survive and grow your assets since then but are still holding them in your own name, you're playing a VERY RISKY game (similar to those with assets in unstable European banks). Even if you don't have any assets right now, a lawsuit or judgment will destroy any credit you are looking to build in the future PLUS you may be looking over your shoulder for years waiting for someone to come after you when you finally do start to turn things around. That's no way to live your life. One lawsuit from an unprotected business can ruin your chances of getting a personal auto loan or refinancing your home. Good people who "play by the rules" can still be sued for the most unexpected reasons. You may be thinking "my business insurance will help me out" but are you really covered? Even if your business is never sued, what if you're unable to pay a vendor and they come after you? Do you want to be personally liable? Put a halt to greedy people looking to take what you have worked for! This is the best time to form an LLC or corporation to limit your personal liability.

  4. Reduce Your Taxes. The bottom line is that operating as a sole proprietorship will cost you the most in employment taxes (up to 15.3% on earned income up to $113,700 in 2013). That means that your income will be taxed as the HIGHEST possible TAX RATE as a sole proprietorship. By the way, filing a Schedule C (the form filed for earned income from a sole proprietorship) also means that your business is among those MOST LIKELY TO BE AUDITED. Why? The IRS has a $300 BILLION tax gap and they believe the biggest tax cheats are the little business owner like you. Why? Their stats show them that sole proprietorship is MOST likely to UNDER report their income and OVER report their expenses (two big no-no's with the IRS). Operating as an S corporation or LLC taxed as an S corporation in many situations is a much better approach for two reasons. You will have part of your profits as distributions which are NOT subject to the 15.3% employment taxes AND move that profit to schedule E, not schedule C which is more likely to be audited!

  5. Access More Funding Options. Operating as a sole proprietorship or general partnership limits you when it comes to funding options. You are also DAMAGING YOUR PERSONAL CREDIT SCORE by operating this way. How do you finance your business as a sole proprietorship? You use your PERSONAL CREDIT cards which will drive up your revolving debt which will in turn DRIVE DOWN your personal credit score! When you form a corporation or an LLC you will SEPARATE your PERSONAL and BUSINESS CREDIT. Yes, any type of cash funding with a personal guarantee will come into play, but that DEBT does NOT show up in the personal credit bureau which is HUGE for future funding! As you form a new LLC or corporation NCP will help (if you choose) to build your business credit scores quickly and get your business in a position to secure funding to grow. But the first step is to form a separate legal entity.

  6. Simply Your Life. Yes, in fact operating as a sole proprietorship will complicate your life, not the opposite. Separating your business and personal life will make it much easier for you to navigate both from a financial and legal point of view. Now you will have each in its own compartment where it belongs to protect your overall success.

  7. Asset Protection. Forming an LLC for your safe assets like investments (those outside a retirement plan) will help you sleep better at night knowing you don't have all your "eggs" in one basket. If you are using a LIVING TRUST to protect your assets that will NOT work and everything in your trust may be vulnerable. Do you own other businesses that really should be operating through a separate bank account in a separate entity? Do you own real estate in your own name that may be sending a message that you are rich and have assets worth taking? Have you been in business for years or are you operating more than one business in one entity? Are you doing some business with a new partner and making the big mistake of running that revenue through your current business? Avoid these costly mistakes and form a separate company for that separate business.


Article Source: http://EzineArticles.com/?expert=Scott_Letourneau

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Sunday, April 7, 2019

By The People FAQs


  • Are BY THE PEOPLE Personnel attorneys? No, we are not attorneys. We are Legal Document Assistants. In California, we are a licensed and bonded profession.

  • What if I need legal advice? You can always consult with an attorney of your choice. We can provide you with a referral for an excellent local attorney who specializes in cases similar to yours if you have questions we cannot answer for you, or your situation is more complicated than our services are meant to help with.

  • Do you have a Notary Public? Yes, whenever we are open we have a Notary Public on staff. If you are a BY THE PEOPLE customer, all Notarizations of your documents are included in our fees. If you have documents not prepared by BY THE PEOPLE, we charge $10.00 per signature you need notarized, in Cash Only. You must sign the document in our presence and provide valid photo identification.

  • Does BY THE PEOPLE handle Criminal Matters? No, we only handle uncontested civil matters. However, if you would like to contact us, we may be able to refer an excellent local attorney to you.

  • I need to have my documents prepared immediately. Do you have Rush or Same-Day document preparation services? Yes, we can prepare certain documents within a few hours, if necessary. Rush and Same-Day services are available for the following documents: Wills, Powers of Attorney, Health Care Directives, Deeds, LLC and Incorporation Articles. A modest Rush Fees will apply to these services.

  • How long will it take to prepare my documents? The documents we prepare at BY THE PEOPLE are typed specifically at your direction. All documents are then rigorously proofed to ensure you receive the highest quality legal documents available anywhere. Most of our documents are prepared and ready for you to sign within one week, depending on your situation. 

For more information please visit http://bythepeopleca.com/

Saturday, April 6, 2019

What Is An Executor Of An Estate



You can start planning your estate at any time. Typically, though, most people don't begin to draft their Will, or establish a trust to hold property, until the "big" things in life happen -- like getting married, buying a home, having children, or starting a business.

Wednesday, April 3, 2019

What is a Financial Power of Attorney?


If you are ever incapacitated, who is going to take care of your finances? Betsy Abramson talks about why preparing these documents in advance is important.


By The People in Fairfield, CA is available to help with document preparation for you to represent yourself in many uncontested legal matters. Learn more here: http://bythepeopleca.com

Tuesday, April 2, 2019

Is An LLC Best?


I am not a lawyer, I am a Judgment Broker. This article is my opinion, and not legal advice, based on my experience in California, and laws vary in each state. If you ever need any legal advice or a strategy to use, please contact a lawyer.

A Limited Liability Company (LLC) is a state-defined entity that can be thought of as being a hybrid business entity, having some features of both partnerships and corporations.

LLC's are popular primarily because they are more flexible, and are simpler to operate than type S or C corporations. Some think LLCs save taxes, however, most often, they do not.

In some ways, LLCs are similar to corporations. Both LLCs and corporations provide basic liability protection for owners and/or shareholders and officers.

One way LLCs are different is that LLCs have owners, and corporations have shareholders. An LLC can have several owners, called "members" or "partners", named members, for the rest of this article.

An LLC's partnership agreement defines the member relationships in the LLC and includes an ownership agreement.

LLCs can have at least one managing member, and may also choose to appoint officers. LLCs usually have an operating agreement, that describes the LLC's function. LLC members can be any combination of individuals, corporations, and other LLCs.

Double taxation occurs when a company first pays tax on their profits; and then their officers, employees, and shareholders, get taxed again on their individual incomes.

Historically, one of the primary reasons that LLCs were chosen, was for their potential tax savings. LLCs avoid the potential double taxation problems that C-type corporations can have.

Double taxation is not really an important financial issue now, because the IRS has caught up, and removed most of the way taxes could be saved on both common and creative types of income.

Now, there seem to be no tax advantages or disadvantages to forming an LLC. No matter what corporate structure or partnership one picks, they must pay taxes. Tax payments may be split up in different ways, however, one way or another, income is taxed.

Single-owner LLCs are taxed the same as sole proprietorships, and file the same 1040 tax return and Schedule C, as a sole proprietor.

Single-owner entities rarely get the same liability protection that larger companies get. Multiple-owner LLCs may potentially provide better liability protection than some corporations.

Multiple-owner LLCs are taxed the same as partnerships. Partners in an LLC file the same 1065 partnership tax return, as would be done with any conventional business partnership.

Owners of LLCs are considered to be self-employed and must pay a self-employment tax of about 15%, on the total net income of the business.

In C or S corporations, only the salary paid to employees is subject to employment tax. The IRS monitors salaries and will define income as salary if they think a company is not paying adequate salaries. The payroll tax is expensive.

The actual advantages of LLCs over S or C corporations is that they are:

1) Much more flexible in ownership.

2) Simpler to operate.

3) Not subject to as many corporate formalities, or reporting requirements.

4) Owners of an LLC can distribute profits any way they want.

Usually, the state, county, and city require LLCs to pay them the same taxes, fees, and registration fees, as corporations must. Also, many states require LLCs to hire an accountant to prepare the LLC's tax returns.

LLCs no longer save you money. The best reason to choose to form an LLC is the flexibility they offer.

Article Source: http://EzineArticles.com/?expert=Mark_D_Shapiro

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Monday, April 1, 2019

Uncontested Divorce - Definition, Terms and Conditions


An Uncontested Divorce is a legal procedure in which the spouses mutually agree on certain terms and conditions, in order to adjourn their marriage. An uncontested divorce can be executed successfully if the spouses comply to a shared agreement in the matters related to the property partition, financial matters, any kind of support activities related to their children, and other litigious affairs.

A major benefit of consenting with an uncontested divorce is that unlike contested divorce, it doesn't have to deal with emotional and financial issues, is relatively inexpensive and quick, since most of the times the spouses may not find any need of an attorney or a court case for the divorce, if they are in good terms with each other, and plan to go with proper understanding. This is quite helpful essentially when the couple has much fewer assets to deal with and no children.

There are many "Do it yourself" forms available at concerned regulatory agencies, which can assist you in going ahead with the uncontested divorce activity yourself, without the need of any outside legal authority or attorney. But, in case of the issues for child support or the partition of community property, one must follow up with attorney related to divorce, before they proceed with signing off any legal documents.

Divorce is a quite tedious and sometimes displeasing procedure. Despite having mutual consent on many of the terms, there still exist loads of matters that need to be taken care of, before ending up the marriage. The couple needs to be capable enough to distinguish these issues and resolve them as soon as they can. To decide whether it is appropriate for a couple to go ahead with an uncontested divorce rather than a contested one, there are certain points that can be used as reference:

1) Are both the spouses agreeing to go for a divorce, or one of them still wants to re-establish the relationship?

2) Are all the financial issues, modes of income and other related assets properly understood by both the spouses, so that they can divide and decide on them accordingly?

3) In case, there are children, are all the issues regarding the child care and support, custody, periodic meetings and visits decided yet?

4) Are all the issues getting settled with mutual consent, and are devoid of any hard feelings?

5) Are both the partners in accord with the honesty or authenticity of the other partner's notions, regarding the resolution of these issues?

If either of the above-mentioned questions has an answer as "yes", then it is appropriate to go for an uncontested divorce.

An uncontested divorce can be carried on easily and without much hassles, but they can be derogatory to certain individuals in case the people involved in the divorce, do not know much about their appropriate rights with respect to the alimony amount, partition of pension, earnings from real estate, and other modes of income.

Article Source: http://EzineArticles.com/?expert=Camy_Divine

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